What is earnings before interest and taxes-earnings per


1. What is Earnings Before Interest and Taxes-Earnings Per Share (EBIT-EPS) analysis? What is the indifference curve? How is risk factored into the EBIT-EPS analysis? What are basic shortcomings of EBIT's analyses?

2. What is the difference between operating and financial leverage? What are risks of having an excessive amount of financial leverage in an organization? What is the degree of total leverage?

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Financial Management: What is earnings before interest and taxes-earnings per
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